Will the US default on October 17th 2013?

[Maxwell]

The donors that own most of these guys will break them before the 17th, and it may not even get down to that.

[Stranger in a strange land]

The donors that own most of these guys will break them before the 17th, and it may not even get down to that.

Problem is, those guys aren't calling the shots. You think Wall Street wants a shutdown? You think Big Oil wants a shutdown? Of course not. The GOP donors of whom you speak have created a Frankenstein over whom they now have no control.

[All Along The Watchtower]

The donors that own most of these guys will break them before the 17th, and it may not even get down to that.

Problem is, those guys aren't calling the shots. You think Wall Street wants a shutdown? You think Big Oil wants a shutdown? Of course not. The GOP donors of whom you speak have created a Frankenstein over whom they now have no control.

Many of the right-wing billionaires that financed the Tea Party are themselves insane ideologues. Don't count on them to be better than this.

[morgieb]

There are enough sane Republicans left to prevent this from happening.

[Grumpier Than Uncle Joe]

There are enough sane Republicans left to prevent this from happening.

Interesting oxymoron, morgie

[Grumpier Than Uncle Joe]

There is zero chance of a default.

Requoting this for possible use in 2 weeks.

[Grumpier Than Uncle Joe]

The likelihood is increasing.........

http://www.mcclatchydc.com/2013/10/06/204429/boehner-house-will-not-pass-bill.html

[Torie]

Even if the debt ceiling is not raised, if by "default" one means defaulting on treasury debt service, that will not happen. Government spending will need to be slashed by 20%, or whatever the cash short fall amount is, but out of the 80% of cash available, debt service will certainly be paid. So there is zero chance given that definition of default. (Grumps this is the proper quote from me for you to save. The other is just the Reader's Digest version of what I meant.)

[Link]

Even if the debt ceiling is not raised, if by "default" one means defaulting on treasury debt service, that will not happen. Government spending will need to be slashed by 20%, or whatever the cash short fall amount is, but out of the 80% of cash available, debt service will certainly be paid. So there is zero chance given that definition of default. (Grumps this is the proper quote from me for you to save. The other is just the Reader's Digest version of what I meant.)

Why doesn't Fox News simply watch MSNBC if they want to get a good source of accurate news?  I keep seeing these statements posted on the web and I wonder why people don't just watch MSNBC news where it was explained quite clearly that the Treasury computer system simply is not set up to pick and choose what to pay.  I know it is fun for Republicans to trot out simplistic and inaccurate analogies comparing the federal government to a household but it isn't a household.  It is a complex multitrillion dollar global institution that is responsible for taking care of 330 million people both at home and abroad.

Do people simply not have any concept of the number, nature, and variety of checks that go out?  For a party that claims to love efficiency and certainty for big business they really do propose some really complex inefficient ideas that dramatically increase uncertainty.

[Joe Biden is your president. Deal with it.]

I think Boehner will say "f**k it!, let them have a vote it won't pass!!" he lets them vote it passes he looks like a wimp. 

We might see the Government reopen soon, as well the debt celling raised.

[opebo]

I think Boehner will say "f**k it!, let them have a vote it won't pass!!" he lets them vote it passes he looks like a wimp. 

We might see the Government reopen soon, as well the debt celling raised.

Wishful thinking.

[Comrade Funk]

No.

[Person Man]

Even if the debt ceiling is not raised, if by "default" one means defaulting on treasury debt service, that will not happen. Government spending will need to be slashed by 20%, or whatever the cash short fall amount is, but out of the 80% of cash available, debt service will certainly be paid. So there is zero chance given that definition of default. (Grumps this is the proper quote from me for you to save. The other is just the Reader's Digest version of what I meant.)

Why doesn't Fox News simply watch MSNBC if they want to get a good source of accurate news?  I keep seeing these statements posted on the web and I wonder why people don't just watch MSNBC news where it was explained quite clearly that the Treasury computer system simply is not set up to pick and choose what to pay.  I know it is fun for Republicans to trot out simplistic and inaccurate analogies comparing the federal government to a household but it isn't a household.  It is a complex multitrillion dollar global institution that is responsible for taking care of 330 million people both at home and abroad.

Do people simply not have any concept of the number, nature, and variety of checks that go out?  For a party that claims to love efficiency and certainty for big business they really do propose some really complex inefficient ideas that dramatically increase uncertainty.

And don't forget that the Joneses can't actually print their own $$.

[Torie]

Even if the debt ceiling is not raised, if by "default" one means defaulting on treasury debt service, that will not happen. Government spending will need to be slashed by 20%, or whatever the cash short fall amount is, but out of the 80% of cash available, debt service will certainly be paid. So there is zero chance given that definition of default. (Grumps this is the proper quote from me for you to save. The other is just the Reader's Digest version of what I meant.)

Why doesn't Fox News simply watch MSNBC if they want to get a good source of accurate news?  I keep seeing these statements posted on the web and I wonder why people don't just watch MSNBC news where it was explained quite clearly that the Treasury computer system simply is not set up to pick and choose what to pay.  I know it is fun for Republicans to trot out simplistic and inaccurate analogies comparing the federal government to a household but it isn't a household.  It is a complex multitrillion dollar global institution that is responsible for taking care of 330 million people both at home and abroad.

Do people simply not have any concept of the number, nature, and variety of checks that go out?  For a party that claims to love efficiency and certainty for big business they really do propose some really complex inefficient ideas that dramatically increase uncertainty.

Ah yes, MSNBC. Trust me, folks will figure out how to cut off certain checks on autopay, and not others.

[🐒Gods of Prosperity🔱🐲💸]

You'd think they might want to fix that computer system.

[Lief 🗽]

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/10/07/if-we-hit-the-debt-ceiling-can-obama-choose-which-bills-to-pay-2/

Prioritizing debt payments is probably impossible, and even if it weren't, the markets would still treat it as a default anyway (plus the decline in government spending will cause a Depression).

[opebo]

You'd think they might want to fix that computer system.

How can they 'fix' anything?  Everyone's gone home without pay.

[Mr. Morden]

Apparently default wouldn't happen on October 17th.  That's simply the day that the US would have to stop borrowing any more money.  But there'd still be enough cash on hand to pay bills for at least a few more days.  A think tank called the Bipartisan Policy Center estimates the actual day of default as somewhere between Oct. 22 and Nov. 1:

http://www.latimes.com/business/money/la-fi-mo-debt-limit-bipartisan-policy-center-treasury-lew-default-20131008,0,4899091.story

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[Cory]

Trust me, folks will figure out how to cut off certain checks on autopay, and not others.

Why do you keep parroting this as if it somehow makes not raising the Debt Limit "okay"? The spin is becoming unbearable.

[Small Business Owner of Any Repute]

"This gun we're holding to your head isn't even that dangerous! Come on, stop complaining. Or else we'll shoot."

[Torie]

Trust me, folks will figure out how to cut off certain checks on autopay, and not others.

Why do you keep parroting this as if it somehow makes not raising the Debt Limit "okay"? The spin is becoming unbearable.

You don't read my posts closely, or even loosely, apparently.

[Lief 🗽]

"This gun we're holding to your head isn't even that dangerous! Come on, stop complaining. Or else we'll shoot."

"And if you do end up getting shot in the head, we're telling the police that Obama pulled the trigger. And the police might be dumb enough to believe us."

[Eraserhead]

I don't think the debt ceiling will be raised on the 17th. We'll see what happens after that.

[barfbag]

You guys do realize it's not mathematically possible for us to default. In one month, the treasury department makes $240,000,000.000 in tax revenue while only paying less than $100,000,000,000 on interest.

[Mehmentum]

You guys do realize it's not mathematically possible for us to default. In one month, the treasury department makes $240,000,000.000 in tax revenue while only paying less than $100,000,000,000 on interest.

You do realize that the government only has the authority (until congress grants otherwise, good luck with that!) to pay bills as they come in.  They can't prioritize what does or doesn't get paid, since that could pretty easily lead to an abuse of the system.